MY05156 DD Pelita Sebungan Plantation Sdn Bhd Audit ......Summary Report Organization: DD Pelita...

Job n°: MY05156 Report date: 7.12.2019 Visit Type: Main

Assessment

Visit n°: 2

CONFIDENTIAL Document: GP 7003A Issue n°: 10 Page n°: 1 of 21

MY05156 DD Pelita Sebungan Plantation Sdn Bhd Audit

Summary Report

Organization: DD Pelita Sebungan Plantation Sdn Bhd

Address: Head Office

No. 63-66, 1st Floor, Kueh Hock Kui Commercial Centre, Jalan Tun Ahmad Zaidi

Adruce, 93150 Kuching, Sarawak.

Contact: Mr Loo Siong Ching (Senior General Manager)

Tel: 019-859 3119

Fax: 082-427 657

Estate Office Address

Sebauh, Bintulu, Sarawak

Standard(s): MS2530-3 : Part 3 : General principles for

Oil Palm Plantations and Organized Small

Holders

Accreditation Body(DSM):

DEPARTMENT STANDARDS

MALAYSIA

Representative: Mr Loo Siong Ching (Senior General Manager)

Site(s) audited: 1. DD Pelita Sebungan 1

2. DD Pelita Sebungan 2

3. DD Pelita Sebungan 3

Date(s) of audit(s): 7th December 2018

Visit Type: MSPO Audit Stage 2 Type of Certification

Assessment

Main Audit

Lead auditor: Dickens Mambu (DM) (LA) Additional team

member(s):

Audit Member (AM)

Abdul Khalik (AK) (AM)

This report is confidential and distribution is limited to the audit team, client representative and the SGS office.

1. Audit objectives

The objectives of this audit were:

▪ to confirm that the management system conforms with all the requirements of the audit standard;

▪ to confirm that the organization has effectively implemented the planned management system;

▪ to confirm that the management system is capable of achieving the organization’s policy objectives.

2. Scope of certification

The audit covered one site performing certification scope:

Production of Fresh Fruit Bunches (FFB) for Plantations in compliance to the MSPO Certification

Standard MS2530-3:2013 Part 3 : General Principles For Oil Palm Plantations And Organized

Smallholders

Validation of processes for production and service provision


Assessment

Visit n°: 2


Has this scope been amended as a result of this audit? Yes

No

This is a multi-site audit and an Appendix listing all relevant sites and/or remote

locations has been established (attached) and agreed with the client Yes

No

3. Current audit findings and conclusions

The audit team conducted a process-based audit focusing on significant aspects/risks/objectives required

by the standard(s). The audit methods used were interviews, observation of activities and review of

documentation and records.

The structure of the audit was in accordance with the audit plan as annexes to this summary report.

The audit team concludes that the organization has has not established and maintained its

management system in line with the requirements of the standard and demonstrated the ability of the

system to systematically achieve agreed requirements for products or services within the scope and the

organization’s policy and objectives.

Number of nonconformities identified: 2 Major 0 Minor

Therefore the audit team recommends that, based on the results of this audit and the system’s

demonstrated state of development and maturity, management system certification be:

Granted / Continued / Withheld / Suspended until satisfactory corrective action is completed.

4. Previous Audit Results

The results of the last audit of this system have been reviewed, in particular to assure appropriate correction

and corrective action has been implemented to address any nonconformity identified. This review has

concluded that:

Any nonconformity identified during previous audits has been corrected and the corrective action

continues to be effective.

The management system has not adequately addressed nonconformity identified during previous audit

activities and the specific issue has been re-defined in the nonconformity section of this report.

5. Audit Findings

The audit team conducted a process-based audit focusing on significant aspects/risks/objectives. The audit

methods used were interviews, observation of activities and review of documentation and records.

The management system documentation demonstrated conformity with the requirements

of the audit standard and provided sufficient structure to support implementation and

maintenance of the management system.

Yes

No

The organization has demonstrated effective implementation and maintenance /

improvement of its management system.

Yes No

The organization has demonstrated the establishment and tracking of appropriate key

performance objectives and targets and monitored progress towards their achievement.

Yes No


Assessment

Visit n°: 2


The internal audit program has been fully implemented and demonstrates effectiveness

as a tool for maintaining and improving the management system.

Yes No

The management review process demonstrated capability to ensure the continuing

suitability, adequacy and effectiveness of the management system.

Yes No

Throughout the audit process, the management system demonstrated overall

conformance with the requirements of the audit standard.

Yes No

Certification claims are accurate and in accordance with SGS guidance N/A Yes No

6. Significant Audit Trails Followed

The specific processes, activities and functions reviewed are detailed in the Audit Plan. In performing the

audit, various audit trails and linkages were developed, including the following primary audit trails, followed

throughout:

Organization: DD Pelita Sebungan Plantation Sdn Bhd

Address: Head Office

No. 63-66, 1st Floor, Kueh Hock Kui Commercial Centre, Jalan Tun Ahmad

Zaidi Adruce, 93150 Kuching, Sarawak.

Contact: Mr Loo Siong Ching (Senior General Manager)

Tel: 019-859 3119

Fax: 082-427 657

Estate Office Address

Sebauh, Bintulu, Sarawak

MPOB License

No.:

508986002000 Expiry date: 1/08/2018 –

31/07/2019

Scope of Activity: 1. Menjual dan mengalih (FFB)

Date of certificate issued and validity Nil (New application)

Other Sustainability Certification Nil

Proposed date of next surveillance audit October 2019

Visit Number: 02 (Stage 2 ) Actual Visit Date: 7th December

2018

Visit Due by Date: Nil For auditor information only

Lead Auditor: Dickens Mambu (DM)

Team Member(s): Abdul Khalik Arbi (AKA)

Additional

Attendees and

Roles

Nil

Standard(s): MSPO MS2530-3:2013 Part 3: General principles for oil palm plantations and organized

smallholders

Audit Language: English & Malay


Assessment

Visit n°: 2


Audit Scope: 1.The audit covered Three (3) site performing the following scope:

Operations, comprising of plantation management systems, production of Fresh

Fruit bunches (FFB), documentation and field assessment.

2.The audit covered all the MS2530-3:2013 Part 3 requirements with no permissible

exclusion of clause in compliance to the MSPO Certification Standard

Audit Plan

Date Time SGS Team Organisational and Functional Units/ Processes and Key Contact

Activities

7th 7.30am DM / AK Arrive Bintulu (from Kuching) DM /AK

December

2018

7th ALL DD Pelita Sebungan Estates

December 2018 MSPO 2530:3: Estate

8.00am Depart to DD Pelita Sebungan Estate Estate Personnel

9.00am Arrive DD Pelita Sebungan Estate

9.15am Opening Meeting

9.30am Audit Process (Document)

• Principle 1: Management commitment

and responsibility

• Principle 2: Transparency

• Principle 3: Compliance to legal

requirements

• Principle 4: Social responsibility, health,

safety and employment condition

• Principle 5: Environment, natural

resources, biodiversity and ecosystem

services

Job / Cert. n°: MY05165 Visit Type: Stage 2 Visit n°: 01

Document: Stage 2 (DD Pelita Sebungan Estate) Issue n°:

Main Assessment Page n°: 2 of 2

• Principle 6: Best practices


Assessment

Visit n°: 2


Location and Maps

Table 1:

Supply Base /

Estates:

Location

Address:

GPS Coordinate(s): Area Certified(HA):

DD Pelita

Sebungan 1

Sebauh, Bintulu,

Sarawak

03012’10.6” N

113023’36.8” E 1644.97

DD Pelita

Sebungan 2

Sebauh, Bintulu,

Sarawak

03011’03.0” N

113017’40.5” E 1167.88

DD Pelita

Sebungan 3

Sebauh, Bintulu,

Sarawak

03009’02.0” N

113014’51.6” E 1530.19

Site Visit

Mill site and Facility, environment components,

safety and health requirement, Workers living

conditions etc.

4.00pm Auditor meeting

4.30pm Audit Closing

5.00 pm End of MSPO Audit Stage 2

7th 5.30 pm DM/AK Back to Bintulu Airport

December

2018


Assessment

Visit n°: 2


DD Pelita Sebungan Locality Map


Assessment

Visit n°: 2


Description of FFB Production

The FFB are sourced from the estate which are directly managed by DD Pelita Sebungan

Plantation Sdn Bhd. The crop yield from the estate as mention in Table 2 below.

Table 2: FFB Production

Estate

FFB Production (MT)

Jan – Dec 2018 (Actual) Jan - Dec 2019(Projection)

Sebungan 1 40,837.09 43,623.00

Sebungan 2 21,511.32 27,274.00

Sebungan 3 32,398.50 36,331.00

Total 94,746.91 107,228.00

Area of Statement

The supplying estate detail of production area (mature/immature) are listed in Table 3.

Table 3: Area Statement of the Supplying Estates

Name of

estate

Title Area

(ha)

Plantation area (ha)

Immature Mature Conservation

*Land

Issue

**Others

DD Pelita

Sebungan

Sdn Bhd

4,669.41

34.35 3979.12 Nil Nil Nil

*Land issue is included in total production

**Others : Transmission tower, Quarry, Roads, line site, rives, water catchment area, office

building ,etc

Stakeholder Consultation and List of Stakeholders Contacted

A public announcement was made 30 days prior to the audit,

https://www.sgs.com/en/certified-clients-and-products/fcm/malaysia/-

/media/1549e3e5b3b84fe7bf72c6fc698c0353.ashx


Assessment

Visit n°: 2


Stakeholder consultation took place in the form of meetings and interviews. Due to this is the

main assessment, meetings with stakeholders were held in the estate office. Detail can be

referred to Appendix 1:

Comment on MS2530-3 Compliance Status:

Comment on Principle 1 Policy on Implementation of MSPO –

MSPO policy available. ‘Sustainability Policy ‘ document number SBG-

POL SP Version 1.0. Signed by Managing Director Tan Sri Yee Ming Seng

dated 22nd May 2018. The policy briefed to the estate management

(Sebungan 2 Estate on 28th June 2018).

In the policy it is stated in one of the points, … we committed to produce

an environmentally sound and sustainable manner through continual

improvement in environmental performance in all our operation”.

Internal audit

Internal audit was conduct as below:

Estate Date of audit

Sebungan 1 5 December 2018



Internal audit and audit results are documented in the ‘MSPO Internal

Audit Plan.

1) Site assessment – Store and PPE 2) Site Assessment – HCV, Riparian , Linesite , Creche Landfill etc 3) Documentation check.

The non-conformities are summarised in the ‘Non-conformity Report ‘

The Corrective Action / Improvement Plan Request ( CAIPR ) presents

the following:

1) Details of the NC 2) Root Cause 3) Corrective Action

The verification of corrective action made available for the management

review meeting which has been conducted on 6th December 2018. The

minute meeting was sighted.

Internal audit result:

1. Safety and Health requirement 2. Training programme and template to be made available. 3.Hazard Identification to be covering all activities


Assessment

Visit n°: 2


The report was available and sighted during audit. The management

review meeting was attended by General manager, Plantation manager

and sustainability from HQ and estate level.

Management Review –

Management Review was conducted on 6th December 2018.

The following was the agenda:

1) Sustainability Management system 2) Internal audit findings 3) Compliance and Grievances 4) Enquiry Register Book 5) Stakeholder Meeting report / Minutes 6) Resource and Training Requirement 7) Compliance status on legal and other requirement 8) Raised up issues and decision making 9) Continual improvement

Continual Improvement

The continual improvement plan only available on social impact:

It include the following categories:

1) Minimise use of certain pesticides

2) Environmental impacts

3) Maximizing Recycling and minimizing waste or by product generation

4) Pollution Prevention and Reduction Plan

5) Social Impact (Available)

6) Management commitment towards MSPO certification

7) Legalization towards foreign workers

DD Plantation is a member of Sarawak Oil Palm Plantation Owners

Association (SOPPOA) and they get information via their quarterly

meeting, workshop and seminar.

Financial resources inclusive training for new information and techniques

was sighted during audit. The financial allocation for yearly was available

in the estate budget. Budget for training will be allocated for the year

2019 onwards

Comment on Principle 2 Transparency of documents relevant to MSPO requirements –

Ref. No: SBG-PROC-CG Version 1.0

Mechanism on Information request by stakeholder’s procedure was

available. The complaint form are made available and recorded in the

file.

Management document are control in the SOP of transparency

document : Doc titled : SBG –SOP-TM Version 1.0

Document Publically available :

1.MSPO Safety and Health Plan


Assessment

Visit n°: 2


2.MSPO Environment and Social Impact Plan and Assessment

3.MSPO Top Management Commitments toward MSPO Compliances

The document are made available upon request

Transparent method of communication and consultation

Procedures shall be established for consultation and communication with

the relevant stakeholders : Ref No: SBG –SOP-TM Version 1.0

Mechanism for Communication and Consultation Procedure

The following are the sections available:

1) Purpose 2) Definition 3) Communication 4) Process Flow

Consultation with employees and other stakeholders.

DD Pelita Sebungan has appointed Mr Hendrik Lanyeng to be the

person responsible on document control, update on legal requirement

and social component for Sebungan Estate 2.

The person in charge is Mr Wong Kiong Ing.

Stakeholder category:

1) Governmental authorities 2) Communities (JV participant) 3) Supplier / Contractor 4) Neighbouring Estate 5) Profesional service 6) Medical 7) Regulatory Body 8) Canteen / Trading

The latest update for stakeholders list is was on August 2018.

They have the name, address, contact person, Designation , email ,

contact number, Fax and the last consultation date with the stakeholder

Person in charge on social matter is Mr Henrik Lagang and Ms Martina

Su.

Traceability

The management has established the following standard operating

procedure, Ref No: SBG-SOP-TM Version 1.0 Traceability on FFB to

comply with the requirements for traceability of the FFB. In Appendix 1,

the following is identified:

1) Harvesting 2) FFB Platform and Inspection 3) FFB Evacuation to Ramp 4) Despatch to Mill 5) Submit Weighbridge chit from Mill 6) Filing of WB Chit 7) Review Backlog Report


Assessment

Visit n°: 2


Checker will record the harvester name and grade in the Bunch Chit e.g.

Bunch Chit No:

Record 25th July 2018

It will also record the following

Total Harvester : 6

Ripe: 573 FFB

Average Bunches Weight : 13.79 kg

PF / Rotten :

Date : 25th July 2018

Name of checker: Wendy

A Weighbridge Advice chit will be issued

Total ticket : 8 Ticket

Vehicle No : 8 Lorry (Internal)

Material : FFB Time: 8.44 pm (Final Summary)

Nett : 65.99 mt

Record of bunches :4865 bunches

Date: 25/7/2018

Sebungan 1, Sebungan 2 and Sebungan 3 will be weighed at DD Palm

Oil Mill Weighbridge .

Each estate will be using separate delivery note when they deliver to the

DD Palm Oil Mill

Comment on Principle 3 Regulatory requirements –

The estate operation is in compliance with the applicable of local state,

national and ratified international laws and regulations.

The plantation sustainability team are responsible to monitored on the

compliances.

DD Pelita Sebungan Plantation Sdn Bhd

MPOB License : 508986002000

Expiry : 31st July 2019.

The management have provided list of law consists of International

Conventions; Malaysia law register and Sarawak State law is made

available at the estate office.

The document reference: File: compliance to legal requirement. File Type:

Law.

The management list of law is monitored by the sustainability team and

monitored periodically. The document updating will be noted in the law

regulations master list with detail revision and date of revision. From the

legal register procedure, the legal register will be check monthly.

Legal land use rights –


Assessment

Visit n°: 2


The project is a Native Customary Right (NCR) land development joint

venture with community, Sarawak state government represent by

PELITA and the developer is Double Dynasty Sdn Bhd.

Management have provided letter approval of land development by the

Sarawak land Survey dated 1st March 2005.

However, through Land Development Procedure, any land claims will

have to be verified and settled with the help of the Sarawak Land Custody

and Development Authority

The project is a Native Customary Right (NCR) land development joint

venture with community, Sarawak state government represent by

PELITA and the developer is Double Dynasty Sdn Bhd.

Management have provided letter approval of land development by the

Sarawak land Survey dated 1st March 2005.

Based on management record, the development area

Total ha in PL: 24,215 ha

Total Planted: 4112.22 ha (Matured area)

Total Land Surrendered : 4792.56 ha

Total landowner: 478 landowner

Total Longhouse : 14 Longhouse

Customary rights –

The land obtained through provisional lease from Sarawak State

government.

Letter dated : 1st March 2005

Comment on Principle 4 Social Impact Assessment –

It was observed the Social Impact was available in the estate office. The

management had taken neccessary action by conduct the meeting namely

AREA DEVELOPMENT COMMITMENT (ADC) MEETING which

conducted on 3rd August 2018 at Mill conference room meeting, time

10.00 am, Agenda: MSPO Implementation which attended by:

i. Loo Siong Ching (DD Pelita Sebungan Plantation Sdn Bhd).

ii. Matrina Su (MSPO Manager, DD Pelita Sebungan Plantation Sdn

Bhd).

iii. Augustine Lamau Kasi (ADC).

iv. Mampak Ak Mandew

v. Nyuring Lai

vi. Mengga Ak Sumbai

vii. Chendari Ak Abu

viii. Anita Ak Unyuk


Assessment

Visit n°: 2


Besides that, Social Impact Questionnaires also distributes to know what

ADC members view and suggestion.

Complaints and grievances –

The Grievance and Complaint form was made available at the front of

Sebungan 2 Plantation office. It was observed the Standard Operation

Procedures (SOP) was available on site which include timely manner to

resolve the issue raised.

Commitment to contribute to local sustainable developments –

Sebungan estate contribution to local development in 2018 recorded 1.Ferry transportation for community (Free of Charge) 2. School transportation 3.Donation to landowner 4.Donation for festivals to villages 5. Employment / Job Opportunities

Employees health and safety –

An occupational safety and health policy and plan has been documented,

effectively communicated and implemented.

Signed by Managing Director Tan Sri Yee Ming Seng dated 22nd May

2018

MAJOR 1 (4.4.4.1)

During site visit at Sebungan 3 Housing site at creche, it was found that

safety measures was not adequate:

I. Smoking activity was found in the creche.

II. Creche floor can cause hazard to the children

III. Electric point was not covered

Employment conditions –

The management has established the policy ‘Employment & Human

Policy’ signed by Managing Director Tan Sri Yee Ming Seng dated 22nd

May 2018 on good social practices regarding human rights in respect of

industrial harmony.

A briefing was sighted 17/10/17 by the staff , Mr Aqmal, for workers in

Phase 1C during morning muster

Training and competency –

Observed that the employees are appropriately trained. Records of

training provided are available in the following documents:

1) Rekod Latihan Pekerjaan JKKP

Details of training conducted for each activity has been recorded in the

“Training Report”. The report contains information that includes topic

covered, the trainer, date and attendees.

For year 2018, examples the list of training conducted are as follows:

1) Menyembur racun (24.03.2018)


Assessment

Visit n°: 2


2) Sprayer (17.03.2018)

3) Membaja (10.03.2018)

All the above training has been conducted training by the MSPO Estate

Coordinator & Safety Officer.

Training needs of individual employees has been established by the

MSPO team at Hq based on competency required which has been

reported by the Estate Manager in the employee‘s Annual Assessment

Report.

Comment on Principle 5 Environmental management plan –

It was observed the environmental and biodiversity policy was

incorporated in one policy, which covered to achieve the goals through

a) To comply with the principle 1 to principle 7 of the Malaysian Sustainable Palm Oil (MSPO) Part 3: General Principals for Oil Palm Plantations and Organized Smallholders guidelines on certification.

b) The company will respect the environment and biodiversity and utilize proven, environmentally- friendly technology in its plantation operations.

c) Establishing, maintaining and continually improving sustainable plantation management system both internally and externally.

d) To set targets and implementation actions to allow the Group to become resource efficient on waste utilization, energy and water usage within our to day operations.

e) Eliminating any potential adverse impacts on environment and biodiversity arising from our plantations activities, educating and enhancing awareness among stakeholders on environment and biodiversity aspect.

f) The company shall carry out the assessment on our operations to ensure the efficient use of our energy to reduce pollution and emission.

g) The company promotes the policy on recycling. h) The company shall establish a water management plan to

maintain the quality and availability of natural water resources. i) Company with all applicable environmental rules and regulations

in the palm oil industry through proper management practices.

The policy was signed by Tan Sri Yee Ming Seng (Managing Director)

dated 22nd May 2018.

It was observed the estate management obtain an Environmental Impact

Assessment (EIA) approval from Natural Resources Environmental Board

(NREB) Sarawak, on 15th April 2004, with reference No.: (19) NREB/6-

4/257. It shows commitment of the estate toward taking care of

environment such as river, soil and etc.

In additional, Environmental Monitoring Report (EMR) was taking line to

monitor the development of the estate. The latest report made available

on site was 3rd Quarter 2018 which cover July - September 2018.

Major 2 (4.5.1.1)


Assessment

Visit n°: 2


Spraying activity was identified at riparian area. It was sighted that

spraying at riprian area Block 3A and 2C.

Efficiency of energy use and use of renewal energy –

Record and usage of Non-renewable Energy (Diesel Consumption) as

below:

Year 2017 2018*

Actual (Liter) Nil 112,011.00

Budget (Liter) Nil 130,500.00

*as November 2018

The record of diesel usage includes of machineries and genset.

Waste management and disposal –

All was products and sources of pollution was identified and documented

which available in Waste

Management Action Plan 2014. Identification of waste product list as

below:

a) Scheduled waste b) Domestic waste c) Industrial waste

The triple rinsing SOP was available and applied for empty containers

and stored properly and to be disposed of by registered collector.

Reduction of pollution and emission –

It was observed the assessment of all polluting activities was available in

the continuous improvement on pollution prevention and environment

plan. The types of pollution have been highlighted as per list below:

a) Pencemaran udara b) Pencemaran bunyi c) Pencemaran air d) Pencemaran bau

It was observed action plan to reduce identified significant pollutants and

emissions was established.

As evidence, there was no open burning activities sighted.

Natural water resources –

It was observed the water management plan was made available in the

estate.

It was observed the report of water quality sampling shown in general,

some of the water qualities of the waterways around the Plantation had

exceeded the Class IIB standards. These included the pH and DO levels

and the BOD and COD levels at all the nine sampling points (Class II-V of

the NWQSM), However, the low pH and DO and the high BOD and COD


Assessment

Visit n°: 2


were typical of the prat swamp discharges, and they could not be regarded

as the results of the present development. It was noted that the TSS levels

at all points were detected low and well below the Class I limit of 25 mg/l.

It was observed the buffer zone area was well maintained.

Status of rare, threatened or endangered species and high biodiversity

value area –

The management is aware regarding the rare, threatened or endangered

species and high biodiversity.

Zero burning practices -

It was observed the estate has been practicing zero burning policy. The

SOP for planting and replanting was available and practiced on site.

Comment on Principle 6 Site management

Management have provided SOP on Best Practices. The Ref No: SBG –

BP version 01.

Objectives of the SOP for the Best Practices

1.Provide sets of practical standard procedure for best practices that

important for enhancing the management of existing oil palm cultivation

2.reduce environment impact especially GHG emission and subsidence

3.reduce negative impact related to oil palm cultivation on peat

4.Minimize GHG emissions and potential impacts to the environment

5. Ensure employer and workers follow the procedures and have good

relationship.

Based on Site assessment, Sebungan area generally undulating. Hilly

area was not planted.

Block area that visited is block 1 & 2 which slightly undulating. The area

was planted with legume cover crop.

The Sebungan area was classified as mineral soil and record on this was

sighted in the agronomist report.

Economic and financial viability plan

The management has made available the Business Management Plan

for yearly basis.

Item within the business management plan are:

1.Crop Projection

Actual 2018

Budget 2018

2.Cash flow statement

3.Capital Expenditure

The management has provided the planting statement which shows


Assessment

Visit n°: 2


planted area.

Sebungan 1 Planted Area : 1345.92 ha (2004)

Sebungan 2 Planted: 1075.35 ha (2005)

Sebungan 3 Planted: 1233.36 ha (2006)

Next replanting programme is planned in 2029 (25 years period planting)

Based on management information, quality of planting material is

controlled by the estate management to ensure on the quality.

a. Seedling used are from various licensed seed producer – Felda AGK Crop projection based on yearly production and FFB yield trend since 2006 first planting.

b. Cost of production: cost per tonne of FFB is stated in the cash flow statement projection from 2017 : RM 250 / mt Price forecast: price forecast is stated in the projection of four years financial from year 2017-2020 (4 years plan)

Financial Plan is recorded in the cash flow statement forecast from 2017-

2020 (4 years plan)

Transparent and fair pricing dealing

Pricing mechanism for the CPO price is properly documented in the

contract agreement with DD Palm Oil Mill.

The management have provided data on transaction of sales and

purchase. Sale summary show of transparent transaction was available

via Sales and Purchase data latest 30 November 2018

Contractor

Contract agreement with contractor for Sebungan 3.

Contractor Agreement sighted:

1.Transporter: Chendari Abu & Son Enterprise

Date signed: June 2018

2.Transporter: Catherine Jenah

Date Signed: June 2018

Final Contract Agreement is sighted. MSPO approved auditor appointed

by the plantation management and the contractor is auditable. The

management monitor contractor woks through work completion and

these are monitored by the estate staff.

As informed by the estate representatives, any work done will be check

before payment commence to the contractor.


Assessment

Visit n°: 2


7. Nonconformities

Corrective Action Request and Observation

MS2530-3: 2013 Part 3: General principles for oil palm

plantations and organized smallholders Non- Conformity N° 1 of 2 Major 1

Date

Recorded>

7th Dec 2018 Due Date> 7th Feb 2019 Date

Closed>

Department /

Function: Administrative Standard Ref.:

Indicator

MSPO 2350-Part 3

4.4.4.1

Document Ref.: Criteria 4: Employees safety

and health

Issue / Rev. Status: Open

Details of

Nonconformity:

Safety Practices was found still lacking at child care centre

Objective

Evidence:

During site visit at Sebungan 3 Housing site at creche, it was found that safety measure was not adequate: i. Smoking activity was found in creche ii. Creche floor can caused hazard to the children iii. Electric point was identified openly

Close-out

evidence:

i. Smoking activity was found in creche No smoking sign was placed in the entrance of creche and workers at creche are been briefed and the management will conduct regular check. Evidence: Attachment 1 Photo 1

ii. Creche floor can caused hazard to the children Creche floor has been re-cemented with cracks rectified. Evidence: Attachment 1 Photo 2

iii. Electric point was identified openly Conduct an overall assessment of electric points and have installed 4 electric points above the reach of the children. Evidence: Attachment 1 Photo 3

Additional Measures: - i. Installed an iron cage outside the creche for the keeping of spare gas cylinder.

Evidence: Attachment 1 Photo 4

ii. Briefed the workers in charge that “No Smoking”, the creche cannot be used for storage of any flammable liquids, chemicals, dangerous tools and poisonous containers. They are also briefed not to use any recycle pesticide containers for any other purposes. Evidence: Attachment 1 Photo 5 (a)(b).

Non- Conformity N° 2 of 2 Major 2

Date

Recorded>

7th Dec 2018 Due Date> 7th Feb 2019 Date

Closed>

Department /

Function: Administrative Standard Ref.:

Indicator

MSPO 2350-Part 3

4.5.5.1


Assessment

Visit n°: 2


Document Ref.: Criteria 3: Natural Water

Resources

Issue / Rev. Status: Open

Details of

Nonconformity:

Spraying activity was identified at riparian area

Objective

Evidence:

It was sighted that spraying at riparian area Block 3A and 2C

Close-out

evidence:

i. Fencing out the riparian area with “No Spraying” signage to create further awareness

of the workers.

ii. The workers are being further briefed on the procedures on spraying at the riparian

area.

iii. The field supervisor is further briefed on the procedures on spraying at the riparian

zone and supervision on will be closely monitored on any request of pesticides for

spraying at the site.

Evidence: Attachment 2(a)(b)

Nonconformities detailed here shall be addressed through the organization’s corrective action process, in

accordance with the relevant corrective action requirements of the audit standard, including actions to

analyse the cause of the nonconformity and prevent recurrence, and complete records maintained.

Corrective actions to address identified major nonconformities shall be carried out immediately and

SGS notified of the actions taken within 30 days. An SGS auditor will perform a follow up visit within

60 days to confirm the actions taken, evaluate their effectiveness, and determine whether certification

can be granted or continued.

Corrective actions to address identified major nonconformities shall be carried out immediately and

records with supporting evidence sent to the SGS auditor for close-out within 60 days.

Corrective Actions to address identified minor non conformities shall be documented on an action plan

and sent by the client to the auditor within 60 days for review. If the actions are deemed to be

satisfactory they will be followed up at the next scheduled visit

Corrective Actions to address identified minor non-conformities have been detailed on an action plan

and the intended action reviewed by the Auditor, deemed to be satisfactory and will be followed up at

the next scheduled visit.

Appropriate immediate action taken in response to each non-conformance as required

Note:- Initial, Re-certification and Extension audits – recommendation for certification cannot be made unless check box 4 is completed.

For re-certification audits the time scales indicated may need to be reduced in order to ensure re-certification prior to expiry of current

certification.

Note: At the next scheduled audit visit, the SGS audit team will follow up on all identified nonconformities to confirm the effectiveness of

the corrective actions taken.


Assessment

Visit n°: 2


8. General Observations & Opportunities for Improvement

Positive Observations:

• The support from DD Pelita Sebungan Plantation Sdn Bhd personnel, especially the ground staff contribute to the smoothness and successful of the audit process.

• The spirit of unity and enthusiasm of the personnel towards achieving MSPO certification is impressive.

• The unit has dedicated staffs who are assets to the company. Their cooperative, knowledgeable and hospitability are commendable

• Organised documentation & highly commitment towards certification.

Appendix 1: List of Stakeholders Contacted

Stakeholder Type of

Stakeholder

Issues raised Comments/Action

Taken

Transporter:

Chendari Abu & Son

Enterprise

External

No issues raised Good cooperation and

helping comment to

estate management

Transporter: Catherine

Jenah

External No issues raised Good cooperation and

helping comment to

estate management

Sarawak Land

Custody and

Development

Authority

External No issues raised Good cooperation and

helping comment to

estate management

Workers

Monica Mone

Malaysia Palm Oil

Certification Council

(MPOCC)

External

Stakeholder

(Government)

NIL NIL


Assessment

Visit n°: 2


Signed on behalf of DD Pelita Sebungan Plantation

Sdn Bhd

Signed on behalf of SGS Malaysia Sdn Bhd

Mr Loo Siong Ching

Senior General Manager

Mr. Dickens Mambu

Certification and Business Enhancement

Regional Head Certification

MY05156 DD Pelita Sebungan Plantation Sdn Bhd Audit ......Summary Report Organization: DD Pelita...

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